European Central Bank (ECB) Executive Board member Fabio Panetta stated today that there should not be any doubt about the central banks commitment to bring inflation back to its aim or about the continuity of its policies even when the recovery gets underway. With the second wave, the starting point for the inflation outlook is now lower than a few months ago. Uncertainty might leave scars even after the economy recovers. The ECB has instruments that it can recalibrate and it is going to do so. Fiscal policy is also an essential element to respond to the crisis and to support stabilisation goals, he opined.
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